Siddaramaiah Flags Red Alert on Rural Jobs Law

Karnataka CM urges PM to halt proposed Viksit Bharat Rozgar Act, warns of dilution of MGNREGA rights

  • CM opposes repeal of MGNREGA, cites dilution of rights-based guarantee
  • Slams shift from 90:10 to 60:40 Centre–State funding pattern
  • Warns of higher fiscal burden on states and loss of demand-driven model
  • Seeks immediate consultations citing violation of cooperative federalism

GG News Bureau
Bengaluru, 31st Dec: Karnataka Chief Minister Siddaramaiah has written to Prime Minister Narendra Modi opposing the proposed Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act and the move to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), warning that the new framework would dilute the rights-based and demand-driven character of the rural employment guarantee scheme.

In his letter dated December 30, Siddaramaiah acknowledged that the proposed law promises to increase guaranteed employment from 100 to 125 days. However, he flagged the absence of assured central funding, stating that the Union government’s contribution would be capped at a centrally notified normative allocation, with the Centre bearing only 60 per cent of the cost in most states.

The Chief Minister cautioned that shifting from the existing 90:10 to a 60:40 Centre–State funding pattern would impose an additional fiscal burden on states already under financial stress. He warned that this could convert a statutory right into a supply-driven scheme, weakening the principle of employment on demand.

Siddaramaiah further warned that if demand exceeds the allocation fixed by the Centre, states could be forced to bear the entire financial burden. This, he said, would effectively make employment guarantee contingent on a state’s fiscal capacity rather than village-level demand.

He also objected to provisions allowing the Centre to determine annual state-wise allocations without clearly defined parameters, calling it a violation of decentralisation and the spirit of the 73rd Constitutional Amendment.

Raising social concerns, the Chief Minister criticised the proposed suspension of works for 60 days during peak agricultural seasons, warning that it could reduce women’s participation, harm vulnerable communities and increase distress migration.

Calling the move a breach of cooperative federalism, Siddaramaiah said the law was introduced without constitutionally mandated consultation with state governments and urged the Prime Minister to suspend its implementation and initiate consultations with all states.

He also objected to the removal of Mahatma Gandhi’s name from the law, stating that it weakens the symbolic and foundational values of the employment guarantee programme.